Silver market under long liquidation; Support seen at 39693
Commodity Online | February 12 2019
UPDATED 10:51:48 IST

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Technically Silver market is under long liquidation as market has witnessed drop in open interest by 2.62% to settled at 13781 while prices down 283 rupees.

Now MCX Silver is getting support at 39693 and below same could see a test of 39563 levels and resistance is now likely to be seen at 40001, a move above could see prices testing 40179.

Silver on MCX settled down 0.71% at 39822 as the U.S. dollar edged up but concerns on global growth slowdown and increasing uncertainties surrounding the Sino-U.S. trade war continued to limit the downside.

The gain in the dollar came after the European Commission sharply downgraded 2019 Eurozone growth forecast and triggered fears of a recession in the core Eurozone economies. Increasing uncertainties surrounding the Sino-U.S. trade tension also kept investor sentiment in check.

A 90-day trade truce between Washington and Beijing is due to expire on March 1. If the deadline passes without a deal, President Donald Trump has said he could follow through on his threat to increase tariffs on Chinese goods.

Last week, Trump said that he had no plans to meet with Chinese President Xi Jinping before the March 1 deadline to achieve a trade deal. Elsewhere, precious metals traders will also be monitoring U.S. economic data for its impact on the greenback this week.

Inflation figures, consumer and producer prices, and also retail figures are all due later this week. Hedge funds and money managers raised switched to a net long position in silver in the week to Dec. 18, the U.S. Commodity Futures Trading Commission said.

Silver speculators switched to a net long position of 1,912 lots, adding 10,879 lots, CFTC said. This was the first time hedge funds and money managers held a net long position in silver since July.

Trading Ideas:
--Silver trading range for the day is 39563-40179.
--Silver dropped as the U.S. dollar edged up but concerns on global growth slowdown and increasing uncertainties surrounding the Sino-U.S. trade war.
--The European Commission sharply downgraded 2019 Eurozone growth forecast and triggered fears of a recession in the core Eurozone economies.
--Increasing uncertainties surrounding the Sino-U.S. trade tension also kept investor sentiment in check.

Courtesy: Kedia Commodities

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